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(a) The franchise fee due pursuant to Section 33.008(b) of PURA shall <br />be payable in accordance with the existing electric franchise; and <br />(2) a sum equal to four percent (4%) of gross revenues received by Oncor <br />from services identified in its "Tarifffor Retail Delivery Service," Section <br />6.1.2, "Discretionary Service Charges," items DD1 through DD24, that <br />are for the account or benefit of an end-use retail electric consumer. <br />(a) The franchise fee amounts based on "Discretionary Service <br />Charges" shall be calculated on an annual calendaryear basis, i.e., <br />from January 1 through December 31 of each calendar year. <br />(b) The franchise fee amounts that are due based on "Discretionary <br />Service Charges" shall be paid at least once annually on or before <br />April 30 each year based on the total "Discretionary Service <br />Charges" received during the preceding calendar year. <br />B. Oncor Franchise Fee Recovery Tariff <br />(1) Oncor may file a tariff amendment(s) to provide for the recovery of the <br />franchise fee on Discretionary Service Charges. <br />(2) City agrees (i) to the extent the City acts as regulatory authority, to adopt <br />and approve that portion of any tariff which provides for 100% recovery <br />of the franchise fee on Discretionary Service Charges; (ii) in the event the <br />City intervenes in any regulatory proceeding before a federal or state <br />agency in which the recovery of the franchise fees on such Discretionary <br />Service Charges is an issue, the City will take an affirmative position <br />supporting the 100% recovery of such franchise fees by Oncor and; (iii) <br />in the event of an appeal of any such regulatory proceeding in which the <br />City has intervened, the City will take an affirmative position in any such <br />appeals in support of the 100% recovery of such franchise fees by Oncor. <br />(3) City agrees that it will take no action, nor cause any other person or entity <br />to take any action, to prohibit the recovery of such franchise fees by <br />Oncor. <br />Section 3. That, in all respects, except as specifically and expressly amended by this <br />ordinance, the existing effective franchise ordinance heretofore duly passed by the governing <br />body of the City and duly accepted by Oncor shall remain in full force and effect according to <br />its terms until said franchise ordinance terminates as provided therein. <br />Page 2 of 4 <br />